Go to Retiree Tax Map New Hampshire Add to State Compare List | View List View State Compare List (0) selected | Compare up to 5 The Bottom Line Most Tax-Friendly Residents of the Granite State pay no taxes on Social Security benefits, pensions or distributions from their retirement plans. There’s no sales tax, either, so you can shop to your heart’s content.Though New Hampshire imposes a 5% tax on dividend interest, a $1,200 exemption is available for residents 65 or older. It also depends more on property taxes for revenue than most states. The median property tax on New Hampshire's median home value of $237,300 is $5,100, the third-highest in the U.S., but some relief is available to those age 65 and older. State Sales Tax No sales tax Income Tax Range New Hampshire doesn't have an income tax. But there's a 5% tax on dividends and interest in excess of $2,400 for individuals ($4,800 for joint filers). Social Security Benefits are not taxed. Exemptions for Other Retirement Income Retirement income is not taxed. A $1,200 exemption is available for residents 65 or older for taxable dividends and interest.IRAsRetirement income is not taxed. 401(k)s and Other Defined-Contribution Employer Retirement PlansRetirement income is not taxed.Private PensionsRetirement income is not taxed. Public PensionsRetirement income is not taxed. Property Taxes The median property tax on New Hampshire's median home value of $236,400 is $5,131.Tax breaks for seniors: An elderly exemption for property taxes is available to those age 65 and older who have lived in New Hampshire for at least five years. Towns and cities set additional eligibility rules, but the minimum exemption is $5,000 off the assessed home value. Property taxes can be deferred but accrue interest at the rate of 5% per year. The deferred property tax may not exceed 85% of the equity value of the residence. The deferral is available (if granted by the assessing officials) to any resident property owner who is at least 65 years old.To be eligible for the Low and Moderate Income Homeowner's Property Tax Relief program in New Hampshire, you must own a home subject to the state education property tax, reside in the home as of April 1 of the year for which the claim for relief is made, and have a total household income of $20,000 or less if single or $40,000 or less if married or head of a household. Inheritance and Estate Taxes There is no inheritance tax or estate tax.